French General Tax Code
In forceI. - A tax is levied on the transfer for valuable consideration of bare land or rights relating to bare land made constructible as a result of their classification, after 13 January 2010, by a local town planning plan or by another town planning document in lieu thereof, in an urban or urbanisation zone open to urbanisation or by a local map in a zone where construction is authorised or by application of article L. 111-3 of the town planning code.
The proceeds of this tax are allocated, within the limit of the ceiling provided for in I of article 46 of law no. 2011-1977 du 28 décembre 2011 de finances pour 2012, to a fund entered in the budget of the Agence de services et de paiement. This fund finances measures to promote the installation and transfer of farmers. In particular, it can be used to support actions to facilitate the transfer of and access to land, promotion, communication and support actions, innovative projects and collective or individual investments.
Those of these measures that fall within the remit of the Etablissement national des produits de l'agriculture et de la mer mentioned in article L. 621-1 of the Rural and Maritime Fishing Code are implemented by this establishment under an agreement with the Services and Payment Agency.
II. - The tax is based on an amount equal to the transfer price defined in article 150 VA, less the acquisition price stipulated in the deeds or, failing that, the actual market value on the date of entry into the transferor's assets according to a detailed and estimated declaration by the parties, updated according to the latest consumer price index excluding tobacco published by the National Institute for Statistics and Economic Studies.
The tax base is reduced by one tenth for each year elapsed from the date on which the land was made constructible beyond the eighth year.
III. - The tax does not apply:
1° To disposals of land for which a declaration of public utility has been issued with a view to expropriation, or to land for which the disposal price defined in Article 150 VA is less than €15,000;
2° Where the ratio between the disposal price and the acquisition price or the market value, defined in II, is less than 10.
IV. - The rate of tax is 5% when the ratio between the land transfer price and the acquisition price or market value defined in II is greater than 10 and less than 30. Above this limit, the portion of the capital gain remaining to be taxed is subject to a rate of 10%.
The tax is payable on the first sale for valuable consideration after the land has been made suitable for building. It is payable by the transferor.
V. - A declaration, in accordance with a model drawn up by the administration, records the information used to calculate the tax. It is filed under the conditions provided for in 1° and 4° of I and II of Article 150 VG.
Where the transfer is exempt pursuant to III or as a result of the allowance provided for in the second paragraph of II of this article, no declaration is filed. The deed of transfer subject to the merged formality or presented for registration shall specify, on pain of refusal of filing or of the registration formality, the nature and basis of this exemption or this absence of taxation. The last two paragraphs of III of article 150 VG are applicable.
VI. - The tax is paid when the declaration provided for in V is filed. The I and II of Article 150 VF, the second paragraph of the I and the II and III of article 150 VH and IV of l'article 244 bis A are applicable.
